Ships on the Rhine and Danube in Germany are sailing 50% to 80% empty as water levels have dropped again on both rivers.

Traders said that the two rivers are major corridors for heavy imports of refined oil products, coal and mineral ores into Germany and Switzerland and for their exports of grains. Cargo owners are facing painful rises in transport costs because of the low water.

More ships are needed to move consignments that normally fit into a single vessel, and low water surcharges are being imposed. Cargo owners generally have to pay for a full ship even if it sails with a fraction of its normal load. A hot, dry weekend in Germany further reduced the levels of both rivers, which have dropped sharply in recent weeks because of exceptionally dry weather.

Traders said that Rhine water levels at Cologne and some southern sections of the river were so low on Monday that vessel operators have a right to cancel transport contracts if they fear their ships will be damaged. On the Danube, water levels have also fallen so low that ship owners generally have a contractual right to refuse to move cargo if they believe their vessels will be at risk.

(Sourced from Reuters)